The whistle has been blown once again in Infosys. It is alleged with recorded evidence that the CEO Salil Parekh and CFO Nilanjan Roy care two hoots for accounting niceties and they have been exhorting the Finance team to play ball. The whistle-blowers claim that the CEO has told the Finance team, "No one in the board understands accounting principles, they are happy as long as the share price is up. Those two Madrasis (Sundaram and Prahlad) and Diva (Kiran Mazumdar-Shaw) make silly points, you just nod and ignore them."
If the CEO has really said what is ascribed to him, he has no right to continue in the company. If the CEO has no respect for the board, either the CEO or the board needs to quit right away. It is easier for the company if one person departs. The term 'Madrasi' has multiple meanings. Originally it referred to a person from Madras Presidency which was a substantial part of southern India. Later on, the word started representing anyone from the Madras state (now called TamilNadu). There was a time when the north Indians would refer to anyone uncomfortable with Hindi as a Madrasi. Now that most people from the south are proficient in Hindi, this epithet has lost its linguistic meaning.
The sense in which Salil Parekh has used the term perhaps is that any person who asks an inconvenient or trivial question is a Madrasi. Prahlad, a relative of N.R.Narayana Murthy is probably not a Madrasi since he could be from Karnataka. Since the CEO is averse to Mr.Prahlad, he may also be spoiling his relations with NRN which means that Parekh's departure is only a matter of time.
Mr.Seshasayee, a former Chair of the board, must be enjoying the fun now. He was overthrown unjustly or so it appears in retrospect. It is time for the present Chairman, Nandan Nilekani to take tough decisions. He has to explain why the board has apparently been quiet for almost a month since the whistle was blown. The audit committee has belatedly retained Shardul Amarchand Mangaldas and Co. to investigate the matter. A predictable but costly trick to buy time.
The drama taking place in a company whose promoters are justifiably known for better corporate governance is a cruel joke on the shareholders. The company's share has lost 14% of its value in the market since the news became public. Who or what is to be blamed for this? The CEO's urge to 'perform' by hook or crook or the market's expectation of sustained growth or the board's incapacity to assess how the company was faring or the 'Madrasis' ' penchant for questioning?
If the CEO has really said what is ascribed to him, he has no right to continue in the company. If the CEO has no respect for the board, either the CEO or the board needs to quit right away. It is easier for the company if one person departs. The term 'Madrasi' has multiple meanings. Originally it referred to a person from Madras Presidency which was a substantial part of southern India. Later on, the word started representing anyone from the Madras state (now called TamilNadu). There was a time when the north Indians would refer to anyone uncomfortable with Hindi as a Madrasi. Now that most people from the south are proficient in Hindi, this epithet has lost its linguistic meaning.
The sense in which Salil Parekh has used the term perhaps is that any person who asks an inconvenient or trivial question is a Madrasi. Prahlad, a relative of N.R.Narayana Murthy is probably not a Madrasi since he could be from Karnataka. Since the CEO is averse to Mr.Prahlad, he may also be spoiling his relations with NRN which means that Parekh's departure is only a matter of time.
Mr.Seshasayee, a former Chair of the board, must be enjoying the fun now. He was overthrown unjustly or so it appears in retrospect. It is time for the present Chairman, Nandan Nilekani to take tough decisions. He has to explain why the board has apparently been quiet for almost a month since the whistle was blown. The audit committee has belatedly retained Shardul Amarchand Mangaldas and Co. to investigate the matter. A predictable but costly trick to buy time.
The drama taking place in a company whose promoters are justifiably known for better corporate governance is a cruel joke on the shareholders. The company's share has lost 14% of its value in the market since the news became public. Who or what is to be blamed for this? The CEO's urge to 'perform' by hook or crook or the market's expectation of sustained growth or the board's incapacity to assess how the company was faring or the 'Madrasis' ' penchant for questioning?
1 comment:
Company's chairman Nandan Nilekani says the law firm's report will be released at an appropriate time. The company ought to release the report as soon as it is received. The company has meanwhile asked PWC also to study the governance gaps, if any. It is amusing that the Board wants external agencies to investigate what it can do itself.
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